Applied Materials (AMAT) Buy, Sell or Hold

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Applied Materials (AMAT)

607.06

+4.02 (0.67%)

as of Jul 2, 2026, 11:59:42 pm Market Open.

153 watching

Investor Insights

Jul 5, 2026, 12:00 am

This summary was created by AI, based on 10 opinions in the last 12 months.

Applied Materials (AMAT) is currently experiencing significant momentum in the semiconductor capital equipment sector, driven by an ongoing chip shortage. The company has seen impressive growth, with a 179% increase this year alone, supported by its ability to produce essential manufacturing equipment for major clients like Intel, Samsung, and TSMC. However, some experts express caution, noting that despite this growth, AMAT's recent guidance has been disappointing, with expectations falling below analyst targets. While the long-term outlook remains positive due to the industry's growth potential, the consensus suggests careful management of investments, with some recommending taking profits after recent gains. The company has demonstrated strong capital management by reducing its share count and providing a decent yield, although volatility remains a concern in such a highly dynamic market.

Consensus

mixed

Valuation

fair_value

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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK

Stockchase Research Editor: Michael O'Reilly We reiterate AMAT as a TOP PICK. The semiconductor manufacturer continues to grow its sales, earnings, margins and cash reserves, while buying back stock. Earnings will be released later this month and already analysts are once again quietly expecting another earnings beat. It pays a small, but growing dividend (doubled over the past 3 years), backed by a payout ratio under 25% of cashflow. We continue to recommend a stop loss at $120, looking to achieve $163 -- upside potential over 16%. Yield 0.7% (Analysts’ price target is $162.67)

DON'T BUY

Great company. Any growth in semiconductors will be good for a market leader like this. Challenge at the moment is China is building up their industry. Short-term positive, but long-term there will be over capacity. At these levels, valuation is extreme. Pass.

BUY ON WEAKNESS

One of the largest manufacturers of chips. Stock's gone sideways, mainly because some the higher growth tech names are starting to show fatigue, especially with rates moving higher. 17x earnings, 19% annual long-term earnings. Not necessarily an expensive stock. Buy on a dip; it would be on his radar. He prefers TSM or NVDA, as they're more directly involved in the space.

BUY

Loved their latest quarter, though others were worried. Micron rallied today. Sellers of AMAT today didn't know what they were doing.

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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK

(A Top Pick Oct 01/20, Up 126.8%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with AMAT continues to progress well. We now recommend trailing up the stop (from $112) to $120.00. This would all but guarantee a return on investment over 61%, including the recommendation to cover 50% of the holding previously.

WEAK BUY

Very cyclical. Does extremely well when chips are in short supply. Once the order backlog is reduced, the earnings will be there for a year or two, but then they'll fall off. Be cautious here. OK to hold for the next 6 months to a year, but then there will be a long dry spell.

WEAK BUY

They report Thursday and he expects great numbers. But he's worried about AM's forecast. They're the premier maker of semiconductor capital equipment.

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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK

(A Top Pick Oct 01/20, Up 113.2%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with AMAT continues to progress well. We now recommend trailing up the stop (from $54.50) to $112.00. This would all but guarantee a return on investment over 54%, including the recommendation to cover 50% of the holding previously.

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HOLD

Really likes it. 22x earnings for a 13-15% growth rate, not bad at all. Equipment maker to make semiconductor chips. In the right place. Be careful if it's swept up again in a tech selloff if yields start moving up again. The most cyclical area in tech is the semi area.

COMMENT

The semi shortage is getting worse. AMAT has an analyst meeting tomorrow where he expects them to explain the status of the production of capital equipment (to make semis). He thinks semis rallied today in anticipation of this meeting.

BUY

Semis are the basic building block of the modern economy. The most economically sensitive area. The group has gone through a correction. Highly doubts the rally is over. Huge shortage of chips. TER, LRCX, and AMAT all look attractive. Demand will be quite strong going forward.

WATCH

Likes the name. World's largest manufacturer of equipment used to make semis. Very cyclical, so doing well now. Benefiting from OLET displays. Higher beta at 1.4, so be careful. If you hold it, keep an eye on it. Use a stop loss.

PAST TOP PICK

(A Top Pick Feb 14/20, Up 77%) In the semiconductor ecosystem. Supplies equipment, services and software to chip manufacturers. Price target of $132. Revenue up. Keep your eyes on the Hitachi acquisition; they really need it to stay competitive.

BUY

It's taken a hit because of the semiconductor chip shortage, but things are good enough to keep climbing as Pres. Biden recognizes the scale of this shortage.

BUY

A great company with fine numbers. The computer chip shortage is a tailwind.

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Applied Materials (AMAT)

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